Big Boost to Power Sector: Cabinet approves 1,720 MW hydro-electric project in Arunachal

The Union Cabinet has approved a ₹26,000-crore hydropower project in Arunachal Pradesh, aiming to boost energy generation, improve infrastructure, and support regional development.

Post Published By: Ayushi Bisht
Updated : 8 April 2026, 6:15 PM IST
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New Delhi: The Cabinet Committee on Economic Affairs, chaired by Narendra Modi, has approved an investment of ₹26,069.50 crore for the construction of the Kamala Hydro Electric Project (HEP) in Arunachal Pradesh.

The project will be developed across the districts of Kamle, Kra Daadi, and Kurung Kumey, marking a significant push for infrastructure and energy development in the northeastern region.

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Capacity and Timeline

The Kamala HEP will have an installed capacity of 1,720 MW, comprising eight units of 210 MW each and one unit of 40 MW. Once completed, it is expected to generate around 6,870 million units (MU) of electricity annually.

According to official estimates, the project is scheduled for completion within 96 months.

Boost to Infrastructure and Local Development

The project is expected to bring major improvements in regional infrastructure. Around 196 kilometres of roads and bridges will be developed, many of which will remain accessible for public use.

Additionally, essential facilities such as hospitals, schools, and marketplaces will be built using dedicated project funds. These initiatives aim to enhance the quality of life for local communities.

Local residents are also expected to benefit through compensation packages, employment opportunities, and corporate social responsibility (CSR) initiatives linked to the project.

Strategic Importance for Power Sector

The hydropower project is expected to strengthen the power supply in Arunachal Pradesh and contribute to better peak demand management at the national level.

It will also play a role in grid stability and offer flood moderation benefits in the Brahmaputra basin, an area frequently affected by seasonal flooding.

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Implementation and Financial Support

The Kamala project will be implemented through a joint venture between NHPC Limited and the Arunachal Pradesh government.

The Centre will provide ₹4,743.98 crore towards flood moderation and ₹1,340 crore for enabling infrastructure, including roads and transmission systems. An additional ₹750 crore will be extended as financial assistance for the state’s equity share.

Benefits for the State

As part of the agreement, Arunachal Pradesh will receive 12 per cent free power from the project, along with an additional 1 per cent allocated to the Local Area Development Fund.

The project is expected to deliver long-term economic and social benefits, further strengthening the region’s role in India’s renewable energy expansion.

Location :  Arunachal

Published :  8 April 2026, 6:15 PM IST

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